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Palatine exits Acora at 3x-plus money in sale to LDC

  • Pablo Mayo Cerqueiro
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Palatine Private Equity has offloaded its minority interest in Acora to LDC, the private capital arm of Lloyds Banking Group, less than three years into its investment in the UK IT managed services provider.

The exit represents a return for Palatine of more than 3x its original 2020 investment made through its third buyout fund, as per a press release.

Prior to the deal, Palatine controlled between 25% and 50% of the group, with Acora CEO David Rabson also holding a significant minority stake, according to Companies House disclosures.

“This new investment from LDC gives us significant firepower to help accelerate our ambitious growth plans,” Rabson said in a statement. “[It] is all about continuing our existing trajectory over the longer term.”

LDC’s minority acquisition is supported by debt financing from direct lender Ares Management and HSBC.

In Palatine’s short tenure, West Sussex-based Acora has undertaken five acquisitions including that of cybersecurity firm Secrutiny in May. It has doubled revenues to more than GBP 60m, supported by double-digit organic growth, according to the press releases.

Acora’s latest public accounts to 31 October 2020 at the topco level showed turnover of GBP 19.3m and GBP 4.4m underlying run-rate EBITDA. Palatine entered the investment in March 2020.

Rabson indicated the company will continue on the acquisition trail under new ownership. “We have a strong M&A playbook while driving further innovation and organic growth,” he said in a statement.

 

Company
Founded in 2006, Acora specialises in providing managed IT services to mid-market customers across a range of sectors, with particular expertise in financial, insurance and other professional services.

People
LDC – Yann Souillard (managing partner), Aylesh Patel (investment director), Dan Gluckman (investment manager).
Company – David Rabson (CEO), Gary Page (CFO) and Richard Atkins (chairman)

Advisors
Company – DC Advisory (corporate finance); Eversheds Sutherland (legal), RSM (consulting).

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